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Reckitt
(LSE:RKT)
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Rating:73Outperform
Price Target:
5,825.00 p
▲(12.93% Upside)
Action:Reiterated
Date:10/30/26
Overall score reflects strengthened fundamentals (higher profitability and sharply improved leverage) and an attractive valuation (low P/E and high dividend yield). The rating is held back by cash flow/cash conversion weakness and only neutral-to-mixed near-term technical signals, while the latest earnings call supports a steady outlook with reiterated guidance despite ongoing cost and category headwinds.
Positive Factors
Emerging-market growth
Strong emerging-market growth provides a durable expansion engine beyond mature markets, supported by sustained momentum in China and India. Continued volume gains and broad geographic demand can improve scale, reinforce brand presence, and support revenue growth over the next several quarters.
Negative Factors
Weak cash conversion
Cash conversion of 42% means reported earnings are translating into substantially less cash in the current period. This can constrain internally funded investment and capital returns, while the divestment-related earnings effect creates a continuing headwind for near-term cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Emerging-market growth
Strong emerging-market growth provides a durable expansion engine beyond mature markets, supported by sustained momentum in China and India. Continued volume gains and broad geographic demand can improve scale, reinforce brand presence, and support revenue growth over the next several quarters.
Read all positive factors
Reckitt (RKT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£34.25B
Dividend Yield6.16%
Average Volume (3M)1.53M
Price to Earnings (P/E)12.1
Beta (1Y)0.99
Revenue Growth-2.49%
EPS Growth133.91%
CountryUK
Employees36,200
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)4.46
Shares Outstanding633,354,860
10 Day Avg. Volume1,607,279
30 Day Avg. Volume1,526,179
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)5.26
Price to Sales (P/S)2.87
P/FCF Ratio23.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£6,261.20Price Target Upside21.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.39
Revenue Forecast (FY)£13.15B
Reckitt Business Overview & Revenue Model
Company Description
Reckitt Benckiser Group Plc engages in the manufacture and trade of consumer brand products including Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon, Harpic, Lysol, Mortein, Mucinex, Nurofen, Nutramigen, Strepsi...
How the Company Makes Money
Reckitt makes money primarily by selling branded consumer products to retailers, distributors/wholesalers, pharmacies, and e-commerce platforms, which then sell to end consumers. Revenue is generated across two main segments: (1) Health: sales of ...
Reckitt Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call presented clear evidence of operational recovery and momentum: strong Q2 acceleration, notable outperformance in emerging markets (especially China), successful innovation rollouts, improved-than-expected margin performance versus prior guidance, and continued disciplined capital returns and cost transformation under the Fuel for Growth program. Offsetting these positives were persistent input cost and commodity pressures, regional supply disruptions (Middle East), category challenges in Household Care/Auto Dish and a near-term EPS and free cash flow hit from the Essential Home divestment. Management reiterated full-year guidance and laid out specific mitigation actions, suggesting confidence in execution. Overall, the positive developments (broad-based revenue acceleration, emerging markets strength, innovation wins, and cost program progress) materially outweigh the nearer-term lowlights and structural headwinds.Positive Updates
Quarterly Acceleration in Revenue Growth
Group like-for-like net revenue grew 2.6% in H1 2026 with strong acceleration in Q2: Core Reckitt like-for-like net revenue +2.7% H1 and +4.2% in Q2; Group Q2 growth of 4.7% (Core Reckitt and Mead Johnson combined). Growth was balanced between volume and price/mix.
Negative Updates
Adjusted EPS Decline
Adjusted EPS declined 9.7% to 152.1p in H1 2026, principally driven by the divestment of Essential Home and lower operating profit from higher input costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Acceleration in Revenue Growth
Group like-for-like net revenue grew 2.6% in H1 2026 with strong acceleration in Q2: Core Reckitt like-for-like net revenue +2.7% H1 and +4.2% in Q2; Group Q2 growth of 4.7% (Core Reckitt and Mead Johnson combined). Growth was balanced between volume and price/mix.
Read all positive updates
Company Guidance
Reckitt reiterated unchanged full‑year guidance for Core Reckitt of 4–5% like‑for‑like net revenue growth and reiterated adjusted operating profit margin guidance for Core Reckitt and Mead Johnson of 24.9–25.6% for 2026 (with a significantly stronger second half), while expecting emerging markets to deliver H2 growth similar to H1 (emerging markets H1 +8.5% and Q2 +9.4%, or +10.3% excl. Russia Hygiene); Europe is expected to return to like‑for‑like growth in H2 with sequential improvement, North America to be stronger in H2 and weighted to Q4, and seasonal OTC incidence is planned slightly higher than the prior season. Management confirmed Fuel for Growth remains on track (total program cost ~£1.0bn, ~£350m in 2026) with fixed costs at 20.1% of net revenue in H1 and a target of below 19% by end‑2027, announced a new £500m 12‑month share buyback and a 5% interim dividend increase, and flagged H1 metrics including adjusted EPS 152.1p (‑9.7% y/y), free cash flow £419m (cash conversion 42%), net debt/EBITDA 2.5x and cumulative shareholder returns of ~£6.4bn since the strategy launch.Reckitt Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.63B | 14.21B | 14.17B | 14.61B | 14.45B | 13.23B |
| Gross Profit | 8.11B | 8.49B | 8.60B | 8.76B | 8.36B | 7.69B |
| EBITDA | 4.80B | 3.92B | 2.95B | 3.19B | 3.90B | 436.00M |
| Net Income | 2.88B | 3.18B | 1.43B | 1.64B | 2.33B | -32.00M |
Balance Sheet | ||||||
| Total Assets | 24.43B | 25.07B | 25.30B | 27.14B | 28.74B | 26.95B |
| Cash, Cash Equivalents and Short-Term Investments | 878.00M | 1.95B | 760.00M | 1.39B | 1.16B | 1.26B |
| Total Debt | 10.16B | 8.43B | 8.66B | 8.54B | 8.88B | 9.56B |
| Total Liabilities | 18.72B | 17.29B | 18.58B | 18.67B | 19.26B | 19.49B |
| Stockholders Equity | 5.67B | 7.75B | 6.70B | 8.45B | 9.44B | 7.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.76B | 2.22B | 2.19B | 1.95B | 1.32B |
| Operating Cash Flow | 2.10B | 2.30B | 2.68B | 2.64B | 2.40B | 1.70B |
| Investing Cash Flow | 1.14B | 1.20B | -396.00M | -466.00M | -139.00M | 239.00M |
| Financing Cash Flow | -3.22B | -2.43B | -2.71B | -1.81B | -2.38B | -2.29B |
Reckitt Technical Analysis
Positive
5158.00
Price Trends
5153.02
Positive
5051.03
Positive
5120.76
Positive
Market Momentum
77.05
Positive
56.45
Neutral
44.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RKT, the sentiment is Positive. The current price of 5158 is below the 20-day moving average (MA) of 5312.30, above the 50-day MA of 5153.02, and above the 200-day MA of 5120.76, indicating a bullish trend. The MACD of 77.05 indicates Positive momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RKT.
Reckitt Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £34.25B | 12.13 | 42.87% | 6.16% | -2.49% | 133.91% | |
71 Outperform | £104.93B | 13.75 | 37.05% | 3.39% | -20.44% | 4.96% | |
70 Outperform | £98.70B | 15.73 | 13.38% | 5.31% | 0.70% | 110.32% | |
68 Neutral | £17.14B | 20.46 | 25.10% | 2.18% | 12.76% | 12.70% | |
65 Neutral | £21.98B | 13.79 | 39.24% | 5.57% | 4.73% | -28.94% | |
63 Neutral | £13.44B | 14.35 | 8.44% | 3.28% | -2.16% | -24.87% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
GB:RKT
Reckitt
5,408.00
-183.04
-3.27%
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Reckitt Corporate Events
Business Operations and StrategyExecutive/Board Changes
Reckitt Director Deborah Waterhouse to Take Helm at CSL Limited
Positive
Oct 22, 2026
Reckitt Benckiser Group plc has announced that non-executive director Deborah Waterhouse will become chief executive officer and managing director of CSL Limited from 1 February 2027. Her move to lead the Australia-listed biotech CSL underscores t...
Stock BuybackRegulatory Filings and Compliance
Reckitt boosts treasury stock with October share buybacks
Neutral
Oct 19, 2026
Reckitt Benckiser has continued its share buyback programme, purchasing 131,181 ordinary shares between 12 and 16 October 2026 from Citigroup Global Markets. The shares, acquired under previously granted shareholder authority, will be held in trea...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Reckitt Benckiser Updates Market on October Share Buybacks
Positive
Oct 12, 2026
Reckitt Benckiser Group plc has continued its share buyback programme, repurchasing 164,672 ordinary shares between 5 and 9 October 2026 through Citigroup Global Markets Limited under authority granted at its May 2026 AGM. The shares, bought at pr...
Stock BuybackRegulatory Filings and Compliance
Reckitt Tightens Free Float with Further Treasury Share Buybacks
Positive
Oct 5, 2026
Reckitt Benckiser has continued its share buyback programme, repurchasing around 171,000 ordinary shares between 28 September and 2 October 2026 at prices mostly just under 5,000 pence and placing the shares into treasury. This move reduces the fr...
Regulatory Filings and Compliance
Reckitt updates total voting rights for shareholders
Neutral
Oct 1, 2026
Reckitt Benckiser Group plc reported that as of 30 September 2026 it has 674,005,752 issued ordinary shares, of which 40,095,817 are held in treasury with suspended voting rights. This leaves a total of 633,909,935 voting rights attached to shares...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Reckitt Buys Back 168,800 Shares, Updates Voting Rights Count
Positive
Sep 28, 2026
Reckitt Benckiser Group has continued its share buyback activity, repurchasing 168,800 ordinary shares between 21 and 25 September 2026 via Citigroup Global Markets within the authority granted at its May 2026 annual meeting. The acquired shares w...
DividendsRegulatory Filings and Compliance
Reckitt CEO and CFO Boost Stakes via Dividend Reinvestment Plan
Positive
Sep 22, 2026
Reckitt Benckiser Group plc, a leading global consumer goods company listed on the London Stock Exchange, is known for its health, hygiene and home brands sold across international markets. The group operates within the consumer staples sector and...
Stock BuybackRegulatory Filings and Compliance
Reckitt Benckiser Adds to Treasury Stock in Ongoing Share Buyback
Positive
Sep 21, 2026
Reckitt Benckiser has continued its share buyback programme, repurchasing 162,000 ordinary shares between 14 and 18 September 2026 from Citigroup Global Markets under an AGM-authorised mandate. The shares, bought at prices around 4,921 to 5,132 pe...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Reckitt Tightens Free Float with Latest Treasury Share Buyback
Positive
Sep 14, 2026
Reckitt Benckiser has continued its share buyback programme, repurchasing 159,850 ordinary shares between 7 and 11 September 2026 via Citigroup Global Markets and holding the shares in treasury. The transactions, conducted under existing sharehold...
Business Operations and StrategyStock Buyback
Reckitt Tightens Capital Structure With Treasury Share Buyback
Positive
Sep 7, 2026
Reckitt Benckiser Group plc has repurchased 114,328 of its ordinary shares between 1 and 4 September 2026 from Citigroup Global Markets in line with authority granted at its May annual meeting, and will hold the bought-back shares in treasury. The...
Business Operations and StrategyRegulatory Filings and Compliance
Reckitt Updates Share Capital and Voting Rights Structure
Neutral
Sep 1, 2026
Reckitt has reported that, as of 31 August 2026, it has 674,005,752 issued ordinary shares, of which 39,400,855 are held in treasury with suspended voting rights. This leaves a total of 634,604,897 voting rights, a key reference figure for investo...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Reckitt Increases Treasury Stock After Latest Share Buyback
Positive
Sep 1, 2026
Reckitt Benckiser Group plc has repurchased just over 155,000 of its ordinary shares between 24 and 28 August 2026 from Citigroup Global Markets, under a previously authorised buyback programme, and will hold the repurchased stock in treasury. Fol...
Other
Reckitt Non-Executive Directors Increase Holdings with Share Purchases
Positive
Aug 28, 2026
Reckitt Benckiser Group plc disclosed that non-executive directors Gavin Patterson and Deborah Waterhouse purchased ordinary shares in the company on 26 August 2026. Patterson acquired 191 shares at £51.83 each, while Waterhouse bought 152 sh...
Stock BuybackRegulatory Filings and Compliance
Reckitt Tightens Capital Base With Latest Share Buyback Tranche
Neutral
Aug 24, 2026
Reckitt Benckiser Group has continued its capital management programme by repurchasing ordinary shares on the market between 17 and 21 August 2026 under authority granted by shareholders. The purchases, executed via Citigroup Global Markets, invol...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Reckitt Tightens Capital Base With New Share Buyback
Positive
Aug 17, 2026
Reckitt Benckiser Group plc has repurchased a series of its own ordinary shares between 10 August and 14 August 2026, acquiring tranches of around 28,000 to 31,000 shares per day via Citigroup Global Markets. The shares, bought under an existing s...
Business Operations and StrategyPrivate Placements and Financing
Reckitt’s Mead Johnson Unit Cuts 2044 Debt and Drops Parent Guarantee
Positive
Aug 14, 2026
Reckitt’s subsidiary Mead Johnson Nutrition Company has completed an any-and-all cash tender offer for its 4.600% Senior Notes due 2044, setting total consideration at $898 per $1,000 of principal plus accrued interest. The offer resulted in...
Stock BuybackRegulatory Filings and Compliance
Reckitt Increases Treasury Stock After August Share Buyback
Neutral
Aug 10, 2026
Reckitt Benckiser Group plc has repurchased 84,700 ordinary shares between 5 and 7 August 2026 through Citigroup Global Markets, under authority granted at its May 2026 AGM, and will hold the repurchased stock in treasury. Following these transact...
Business Operations and StrategyPrivate Placements and Financing
Reckitt’s Mead Johnson Launches Tender Offer for 2044 Notes and Seeks Indenture Changes
Neutral
Aug 5, 2026
Reckitt’s wholly owned subsidiary Mead Johnson Nutrition Company has launched an any-and-all cash tender offer for its $500 million 4.600% senior notes due 2044, coupled with a consent solicitation to amend the governing indenture.The propos...
Business Operations and StrategyStock Buyback
Reckitt launches £500m share buyback to boost shareholder returns
Positive
Aug 4, 2026
Reckitt Benckiser Group plc has launched a new share buyback programme of up to £500 million over the next 12 months, aimed at increasing returns to shareholders and reducing the company’s share capital. The programme begins with a firs...
Regulatory Filings and Compliance
Reckitt updates share capital and total voting rights
Neutral
Aug 3, 2026
Reckitt Benckiser has reported that, as of 31 July 2026, it has 674,005,752 issued ordinary shares, of which 38,922,325 are held in treasury and carry no voting rights. This leaves a total of 635,083,427 voting shares in issue, a figure that share...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.